Doon frae Troon
Ryder Cup Winner
Not usually
Their spelling has been a bit off lately though [says the guy who put an H into Crystal.]
Not usually
Their spelling has been a bit off lately though [says the guy who put an H into Crystal.]
Val
Ryder Cup Winner
As you get older you'll spend less, debts are all paid and your salary increases kids will be gone which in turn will lead to monthly savings increasing. People also have the opportunity if they have pension shortfalls of securing hard cash from equity of their paid off homes.
It's all subjectives anyway but I reckon personally £100k max in the pension pot will cover me. I'll be extremely greatfull if I live beyond 70.
It's all subjectives anyway but I reckon personally £100k max in the pension pot will cover me. I'll be extremely greatfull if I live beyond 70.
SwingsitlikeHogan
Major Champion
We are a bit short of cash at the moment with both kids at uni etc - and a huge monthly mortgage payment. But I have what seems to be a reasonable pension fund - so extending repayment period for mortgage by 5 yrs (to my age 70 
) knocks £500 a month off my mortgage payment. A good thing that aspect of it - and as soon as we can we will revert to original repayment term. This will of course mean that when I revert I would have a higher monthly payment than before - not good.
But here's where I could take advantage of my existing pension plans. Instead of reverting to repayment by age 65 I could increase term to say me being 67 (and so my payment will be close to what it originally was) - knowing that at 65 (when I 'retire') I have a pension fund from which I could draw down 25% and pay off mortgage loan outstanding.
) knocks £500 a month off my mortgage payment. A good thing that aspect of it - and as soon as we can we will revert to original repayment term. This will of course mean that when I revert I would have a higher monthly payment than before - not good. But here's where I could take advantage of my existing pension plans. Instead of reverting to repayment by age 65 I could increase term to say me being 67 (and so my payment will be close to what it originally was) - knowing that at 65 (when I 'retire') I have a pension fund from which I could draw down 25% and pay off mortgage loan outstanding.
SwingsitlikeHogan
Major Champion
btw - point of doing the above is 'use' my pension pot without actually using it, as a means to release pressure on my finances today by reducing mortgage payments. Doing it this way rather than by drawing down on pension pot today (which I could do) to pay off some of our mortgage and hence reduce the monthly payments - this would work but would have a significant impact further down the line.
SocketRocket
Ryder Cup Winner
No, they have a reputation for being impartial. Not.
